Accounting

Information
Systems
9th Edition

Marshall B. Romney
Paul John Steinbart

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Introduction to Systems
Development and
Systems Analysis

Chapter 16

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Learning Objectives

1. Explain the five phases of the

systems development life cycle.
2. Discuss the people involved in
systems development and the roles
they play.
3. Explain the importance of systems
development planning and describe
planning techniques.

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Learning Objectives
4. Discuss the various types of
feasibility analysis, and calculate
economic feasibility.
5. Explain why systems change triggers
behavioral reactions, what form this
resistance to change takes, and how
to avoid or minimize the resulting
problems.
6. Discuss the key issues and steps in
systems analysis.
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Introduction
 Ann Christy was promoted to controller of
Shoppers Mart (SM).
 She determined the following:
 Store managers cannot obtain information
other than what is contained on SM’s
periodic, preformatted reports.
 The sales and purchasing departments
cannot get timely information about what
products are or are not selling well.

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Introduction

 Ann is convinced that Shoppers Mart

needs a new information system.
 She has the following questions:
1. What process must the company go
through to obtain and implement a
new system?
2. What types of planning are
necessary to ensure the system’s
success?

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Introduction

3. How will employees react to a new

system?
4. How should the new system be
justified and sold to top
management?
5. How can expected costs and benefits
be quantified to determine whether
the new system will indeed be cost-
effective?
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Introduction

 This chapter discusses five major topics.

 The first topic is the system development
life cycle (Objective 1).
 The second topic is the planning activities
that are necessary during the development
of the life cycle (Objectives 2 and 3).
 The third topic is the process of
demonstrating the feasibility of a new AIS
(Objective 4).

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Introduction

 The fourth topic is the behavioral

aspects of change that companies
must deal with to successfully
implement a new system (Objective 5).
 The last topic is a discussion of
systems analysis, the first step in the
development cycle (Objective 6).

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Learning Objective 1

Explain the five phases of

the systems development
life cycle.

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The Systems Development
Life Cycle
 What are the five steps in the
systems development life cycle
(SDLC)?
1. Systems analysis
2. Conceptual design
3. Physical design
4. Implementation and conversion
5. Operations and maintenance
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 The Systems Development
Life Cycle: Systems Analysis
Systems Analysis
Do initial investigation
Do system survey
Do feasibility study Conceptual
Determine information needs Design
and system requirements
Deliver systems requirements

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 The Systems Development
Life Cycle: Conceptual Design
Conceptual Design
Identify and evaluate
design alternatives
Develop design specifications Physical
Design
Deliver conceptual design
requirements

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 The Systems Development
Life Cycle: Physical Design
Physical Design
Design output
Design database
Implementation
Design input and Conversion
Develop programs
Develop procedures
Design controls
Deliver developed system
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 The Systems Development
Life Cycle: Implementation and
Conversion
Implementation and Conversion
Develop plan
Install hardware and software
Train personnel, test the system
Operation
Complete documentation
and
Convert from old to new system Maintenance
Fine-tune and review
Deliver operational system

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 The Systems Development
Life Cycle: Operation and
Maintenance
Feasibility analysis
Operation and Maintenance and decision points:
Operate system Economic
Feasibility
Modify system
Technical Feasibility
Do ongoing maintenance
Legal Feasibility
Deliver improved system
Scheduling
Feasibility
Systems
Operational
Analysis Feasibility

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Learning Objective 2

Discuss the people involved

in systems development and
the roles they play.

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The Players

 Who are the people involved in

developing and implementing AIS?
 Management
 Accountants
 Information systems steering
committee
 Project development team
 Systems analysts and programmers
 External players

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The Players

 What are top management’s roles?

– providing support and encouragement
– establishing system goals and
objectives
– determine information requirements

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The Players

 What are accountants’ roles?

– determine their information needs
– may be members of the project
development team
– play an active role in designing
system controls

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The Players

 What are the steering committee’s

roles?
– set policies that govern the AIS
– ensures top-management participation
– guidance and control
– facilitates coordination and integration
of IS activities

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The Players

 What are the project development

team’s roles?
– plan each project
– monitor project
– make sure proper consideration is
given to the human element

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The Players

 What are the system analyst’s and

programmer’s roles?
– study existing systems
– design new systems and prepare
specifications
– write computer programs

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Learning Objective 3

Explain the importance of

systems development
planning and describe
planning techniques.

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Planning Systems
Development
 Why is planning an important step in
systems development?
– consistency
– efficiency
– cutting edge
– lower costs
– adaptability

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Planning Systems
Development
 What types of systems development
plans are needed?
– project development plan
– master plan

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Planning Techniques
 Two techniques for scheduling and
monitoring systems development activities
are:
1 PERT (program evaluation and review
technique)
• PERT requires that all activities and the precedent
and subsequent relationships among them be
identified.
2 Gantt chart
• A bar chart with project activities listed on the left-
hand side and units of time across the top

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 Planning Techniques:
Gantt Chart

Project Planning Chart

(Sample Gantt Chart)
______________________________________________
Activity Week Starting
______________________________________________
1
______________________________________________
2
______________________________________________
3
______________________________________________
4
______________________________________________
5
______________________________________________
6
______________________________________________
7
______________________________________________
8
______________________________________________
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Learning Objective 4

Discuss the various types of

feasibility analysis, and
calculate economic feasibility.

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Feasibility Analysis

 Systems analysis is the first step in the

systems development life cycle (SDLC).
 A feasibility study (also called a business
case) is prepared during systems analysis
and updated as necessary during the
remaining steps in the SDLC.
 The steering committee uses the study to
decide whether to terminate a project,
proceed unconditionally, or proceed
conditionally.

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Feasibility Analysis

 What five important aspects need to

be considered during a feasibility
study?
1. Technical feasibility
2. Operational feasibility
3. Legal feasibility
4. Scheduling feasibility
5. Economic feasibility
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Feasibility Analysis

 Economic feasibility is the most

frequently analyzed of the five
aspects.
 What is the basic framework for
feasibility analysis?
– capital budgeting model

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Feasibility Analysis

 What are some capital budgeting

techniques?
– payback period
– net present value (NPV)
– internal rate of return (IRR)

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Learning Objective 5

Explain why systems change

triggers behavioral reactions,
what form this resistance to
change takes, and how to
avoid or minimize the
resulting problem.

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Behavioral Aspects of
Change
 Individuals involved in systems
development are agents of change
who are continually confronted by
people’s reaction and resistance to
change.
 The best system will fail without the
support of the people it serves.

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Behavioral Aspects of
Change
 Why do behavioral problems occur?
– personal characteristics and
background
– manner in which change is introduced
– experience with prior changes
– communication
– disruptive nature of the change
process
– fear
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Behavioral Aspects of
Change
 How do people
resist AIS
changes?
– aggression
– projection
– avoidance

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Behavioral Aspects
of Change
 How can behavioral problems be
overcome?
– meet needs of the users
– keep communication lines open
– maintain a safe and open atmosphere
– obtain management support
– allay fears
– solicit user participation
– make sure users understand the system

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Behavioral Aspects of
Change
– How can behavioral problems be
overcome? (continued)
– provide honest feedback
– humanize the system
– describe new challenges and opportunities
– reexamine performance evaluation
– test the system’s integrity
– avoid emotionalism
– present the system in the proper context
– control the users’ expectations
– keep the system simple

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Learning Objective 6

Discuss the key issues and

steps in systems analysis.

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Systems Analysis

 When a new or improved system is

needed, a written request for systems
development is prepared.
 The request describes the current
system’s problems, why the change is
needed, and the proposed system’s
goals and objectives.
 It also describes the anticipated
benefits and costs.
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Systems Analysis

 There are five steps in the analysis

phase:
1. Initial investigation
2. Systems survey
3. Feasibility study
4. Information needs and systems
requirements
5. Systems analysis report
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Case Conclusion

 What did Ann Christy decide?

– that the corporate office would
gather daily sales data from each
store

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End of Chapter 16

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